Housing inventory is low across the nation. However, some sellers are missing out on the perfect chance to move up into higher price points.
I’m coming to you from New York City, where I shot my new commercial with Barbara Corcoran. I got to chat with some of the top agents in the country, and I’m hearing the same thing over and over: there is a lack of inventory in the market.
Even here in Kentucky, inventory is low. Remember, housing inventory is measured by the absorption rate. An absorption rate between five and six months is considered a balanced market, while anything over six months is a buyer’s market and anything under five months is a seller’s market.
There are seller’s markets popping up all across the country. Just listen to what these top agents had to say:
Amanda Howard from Huntsville, Alabama says her market only has 3.5 months of inventory, while Nick Shivers from Portland says that there are only 1.3 months of inventory available across the board. In fact, some neighborhoods in Portland don’t have any inventory at all.
John Modine from Dayton, Ohio, says that while the inner city market is still full of foreclosures, homebuyers in the suburbs are fighting through multiple offers and running out of houses to look at.
Curtis Johnson from Phoenix says that some areas have almost no inventory, while others still have some. Marti Hampton from North Carolina says that she has definitely seen low inventory up to certain price points in certain areas. Some neighborhoods start to balance out once they are over $400,000, while others have more inventory in the $600,0000 price range.
So, why aren’t there enough homes in the $100,000 to $400,000 market? There are a variety of reasons.
According to Mark Spain from Atlanta, we went through a period where there was not a lot of new housing stock created because construction costs went up much faster than appreciation. Tiffany Lachnidt from Colorado Springs believes some of the problem is due to a lack of economic confidence.
If you are a homeowner in the $100,000 to $400,000 price range, then you really need to listen to Marti Hampton. Marti says that people are simply staying in their homes too long. Right now, sellers in this price range have a great opportunity to sell for top dollar and get a great deal on a home in the $550,000 to $600,000 range.
In other words, you have the chance to sell in a seller’s market and buy in a buyer’s market.
Now, you can check out the video for a few behind-the-scenes shots of my commercial with Barbara Corcoran. We are glad to be on Barbara’s team, and we would like to be on your team, too.
Whether you are looking to buy in a seller’s market or if you plan on moving up to bigger and better things, just give us a call or send us an email. My team and I would be happy to help you!